Finance

Earnings Reaction History: Rambus (NASDAQ:RMBS) topped earnings-per-share estimates 83% of the time

Rambus Inc. (NASDAQ:RMBS) is projected to declare fiscal first quarter financial results right after the stock market’s official close on April 20, 2017. The stock lost about -6.1 percent in price since last results when it was at $13.98 a share. Based on the most relevant past-periods data, there is an 53.57 percent probability for this firm’s share price to go down following next quarterly results. Earnings reaction history tells us that the equity price moved down 15 times out of last 28 reported quarters. It has beaten earnings-per-share estimates 83% of the time in its last 12 earnings reports. It fell short of earnings estimates on 0 occasions, and it has met expectations 2 times.

Here’s how traders responded to RMBS earnings announcements over the past few quarters.

Rambus Inc. (RMBS) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was 15.56 percent over the past four quarters. Back on January 30, 2017, it posted earnings per-share earnings at $0.13 which came in line with the consensus $0.13 projection (no surprise). For the quarter, revenue came in at 97.56M versus consensus estimate of 96M. The stock dropped -7.15 percent the session following the earnings reports were released, and on 7th day price change was -10.23 percent.

On October 24, 2016, it reported earnings at $0.12 a share compared with the consensus estimate of $0.1 per share (positive surprise of 20%). Revenue of 89.86M for that quarter was above the $86.6M analysts had expected. The stock climbed 4.34% the day following the earnings announcement, and on 7th day price change was 1.67%.

On July 18, 2016, it recorded $0.12 a share in earnings which topped the consensus estimate of $0.1 (positive surprise of 20%). Revenue for the quarter was $76.5M while analysts called for revenues to be $74.44M. The stock gained 3.43% the day following the earnings data was made public, and on 7th day price change was 7.1%.

On April 18, 2016, it announced earnings per share at $0.11 versus the consensus estimate of $0.09 per share (positive surprise of 22.22%). That came on revenues of $72.68M for that period. Analysts had expected $73.25M in revenue.

Rambus Inc. Earnings Estimates

As Q1 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.15. The analysts’ present consensus range is $0.15-$0.15 for EPS. The market consensus range for revenue is between $95.14M and $96M, with an average of $95.52M.

Rambus Inc. (NASDAQ:RMBS) last ended at $13.1, sending the company’s market cap near $1.46B. The consensus 12-month price target from analysts covering the stock is $15.29. The share price has declined -9.66% from its top level in 52 weeks and advanced -4.87% this year. It recently traded in a range of $13-$13.17 at a volume of 475380 shares. The recent trading ended with the price nearly 2.34 higher for the last 5 trading days, rebounding 17.7% from its 52-week low.

 

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